The Investment Advisers Act of 1940 requires all investment advisers to register with the Securities and Exchange Commission (SEC) and is designed to protect the public from fraud or misrepresentation by investment advisers.
An Investment Advisory Service is a professional service providing personalized investment advice and financial planning in exchange for a fee. Investment advisers must register with the Securities and Exchange Commission (SEC) and comply with the Investment Advisers Act.
Investment Analysis is the study and evaluation of the potential return and feasibility of a proposed investment. This process assists investors in making informed decisions by analyzing various metrics and methods to project future returns.
An investment analyst helps in making informed decisions about investments in securities, commodities, and more, typically employed by financial institutions.
Investment appraisal, also known as capital budgeting, involves evaluating the financial viability of a potential investment or project. It assesses whether the investment will yield adequate returns to justify the initial outlay.
Investment banks play a pivotal role in the financial markets by advising on mergers and acquisitions, underwriting new securities, and often trading securities for their own accounts. They differ from commercial banks, focusing on capital creation for corporations and other entities.
An investment banker is a firm acting as an underwriter or agent that serves as an intermediary between an issuer of securities and the investing public.
Investment banking encompasses a range of financial services focused on serving large corporations, public bodies, and investors, distinguishing itself from retail or commercial banking by not directly involving individual depositors.
An investment centre is a unit or division within an organization where capital expenditures are made under the specific oversight of management responsible for that centre. This focus allows for detailed accountability and efficient resource management.
An investment club is a group of individuals who pool their money to make joint investment decisions. Each member contributes capital and decisions on investments are made collectively.
An investment company is a financial institution engaged in holding securities and assets for investment purposes. They pool funds from individual investors and invest them in diversified portfolios of securities, offering professional management and diversification benefits.
Legislation passed by Congress requiring registration and regulation of investment companies by the Securities and Exchange Commission. The Act sets the standards by which mutual funds and other investment companies operate.
Investment costs are the expenditures incurred when an individual or organization allocates money to acquire investments or assets, often with the anticipation of generating returns over time.
An Investment Counsel is responsible for providing investment advice to clients and executing investment decisions. This can include financial planners, stockbrokers, and other financial professionals performing similar functions.
The Investment Tax Credit (ITC) is a significant taxation provision that promotes certain types of investments by offering tax incentives for investing in qualifying assets, especially in areas like renewable energy, technology, and equipment.
Investment demand refers to the desire and willingness of firms and individuals to invest in various projects and financial assets under given economic conditions.
Investment expenditure, also known as capital expenditure, is the spending by businesses or governments on long-term assets to generate future growth.
Investment income refers to the earnings generated from various types of investments, including dividends, interest, and gains made from the sale of investment properties.
Investment interest expenses are interest payments made on loans used to purchase investments such as stocks, bonds, and undeveloped land. These expenses can be tax-deductible but are limited to the net investment income received.
The time span from the acquisition of an investment to its final disposition. It encompasses all relevant investment contributions, cash flows, and resale proceeds, providing the best measure of the rate of return from the investment over its entire duration.
Investment Management involves the selection and overseeing of various financial assets to meet specified investment goals for the benefit of investors.
An investment objective is a financial goal that an investor aims to achieve, guiding them on the type of investment suitable for their needs. For example, an objective focused on capital growth might lead to investing in growth-oriented mutual funds or individual stocks, whereas an income-driven objective could direct investments toward income-oriented mutual funds or stocks.
An investment portfolio is a collection of various assets such as stocks, bonds, real estate, and other investment instruments owned by an individual or an organization to achieve financial goals.
Detailed overview of investment properties, including definitions, examples, FAQs, related terms, and resources for further study.
The Investment Services Directive (ISD) of 1993 provided a regulatory framework for securities dealing within the European Union. It established that securities firms admitted by their domestic regulator could operate throughout Europe. From 2007, the ISD was superseded by the Markets in Financial Instruments Directive (MiFID), which further consolidated the single market for financial services.
The Investment Services Directive (ISD) was a directive of the European Union aimed at creating a single market in investment services and fostering financial integration across member states.
Investment software is a computer program designed to track and manage investments in shares, cost, and revenue. These programs often include price and dividend histories of securities, enabling users to make comparisons with major market indicators and analyze tax ramifications of investment decisions.
An investment strategy is a plan to allocate assets among various investment choices such as stocks, bonds, cash equivalents, commodities, and real estate. An effective investment strategy considers factors like interest rates, inflation, economic growth, the investor's age, risk tolerance, available capital, and future capital needs.
An incentive in the USA that allows businesses to offset a portion of the cost of a depreciable asset against their income tax liability in the year of purchase, promoting investments in certain types of assets.
An investment trust is a company that collects funds from shareholders to invest in a diversified portfolio of securities, aiming to achieve income and capital gains. While similar to unit trusts, investment trusts have several distinctive characteristics.
Investment value represents the estimated worth of an investment to a specific individual or institutional investor. It can differ from market value based on the unique circumstances and requirements of the investor.
Investment-Grade describes bonds suitable for purchase by prudent investors. Standard & Poor's (S&P) designates the bonds in its four top categories (AAA down to BBB) as investment-grade.
An investor is a party who allocates capital to purchase an asset with the expectation of financial returns. Generally, investors are more diligent and conservative compared to speculators.
The Investor Relations Department in major public companies plays a crucial role in communicating and managing relationships with investors, ensuring transparency, and maintaining the company's image within the investment community.
Invisible assets, often referred to as intangible assets, are non-physical assets that add value to a company such as intellectual property, brand reputation, and customer relationships.
Earnings from international transactions involving services such as insurance, banking, shipping, tourism, and accountancy.
The 'invisible hand' is a term coined by Adam Smith, describing the self-regulating behavior of the marketplace, where individual pursuits of self-interest unintentionally promote the welfare of society as a whole.
An invoice is a detailed bill sent from a seller to a buyer, outlining the products or services provided, prices, payment terms, and due dates.
Invoice Discounting is a financial practice wherein a business sells its invoices to a third party, typically a factoring house, at a discount to obtain immediate cash. It differs from traditional factoring in that it does not typically include sales accounting and debt collecting services.
The term involuntary refers to actions or circumstances that occur without an individual's willing consent, often forced or opposed. It signifies situations where individuals are made to act against their own will, typically under some form of duress.
Involuntary bankruptcy occurs when creditors force a debtor into bankruptcy proceedings, typically under Chapter 7 or Chapter 11 of the U.S. Bankruptcy Code.
Involuntary conversion refers to the forced disposition of property, where the property owner is reimbursed for the property taken or destroyed.
Involuntary exchange occurs when property is destroyed, stolen, condemned, or disposed of under the threat of condemnation, and the owner receives money or other property as compensation.
An involuntary lien is a legal claim against a property that is imposed without the owner's consent to secure the payment of debts such as unpaid taxes, special assessments, or other obligations.
An involuntary trust, also known as a constructive trust, is a legal relationship recognized by courts that arises due to the association between parties, even in the absence of a formal written trust document.
Learn about involuntary unemployment, where workers willing to work for lower wages are unable to find employment, often during economic recessions.
The Inwood Annuity Factor is a multiplier used to determine the present value of a series of periodic payments from a level-payment income stream, based on a specific interest rate.
The Institute of Directors (IoD) is a professional organization in the United Kingdom that supports, represents, and sets standards for business leaders and company directors.
An Integrated Office System (IOS) refers to a software suite that consolidates essential office tasks like email, calendar, document creation, and storage, facilitating seamless operations and enhanced productivity within organizations.
IOSCO is an international cooperative of securities regulatory agencies and organizations. It functions to develop, implement, and promote adherence to internationally recognized standards for securities regulation.
An IOU (phonetic abbreviation of 'I owe you') is a signed document acknowledging a debt and stating the amount owed. It is informal and less legally binding compared to other financial instruments such as promissory notes or bills of exchange.
An Internet Protocol (IP) address is a unique identifier assigned to each machine connected to a network, enabling the identification and communication over the Internet.
The iPad, a hugely successful mobile tablet computer produced by Apple Inc., revolutionized mobile computing and expanded the use of apps since its 2010 release.
The iPhone is a popular portable phone that also serves as a web browser, camera, and music and video player developed by Apple Inc.
The iPod is a portable audio and video player developed by Apple in 2001. Widely known for its user-friendliness and multifunctionality, it supports various file formats and integrates with Apple's iTunes store.
The International Public Sector Accounting Standards Board (IPSASB) is a global standard-setting body responsible for developing and promoting the adoption of International Public Sector Accounting Standards (IPSAS) to enhance the quality and transparency of public sector financial reporting.
A rule introduced in the Finance Act 2000 that requires individuals providing services through intermediaries to be taxed as employees rather than self-employed, affecting tax deductions, National Insurance contributions, and expense deductions.
The Iron Law of Wages is an economic theory proposed by English economist David Ricardo, which suggests that real wages tend to gravitate towards the minimum wages necessary for the subsistence of workers.
A term characterized in a 1996 speech by then-Federal Reserve Chairman Alan Greenspan, referring to market optimism that may distort asset value and lead to an undue escalation followed by a prolonged contraction.
Irrecoverable Input VAT refers to the Value-Added Tax (VAT) paid on items acquired to produce exempt supplies and cannot be reclaimed or offset against output tax.
Irregulars refer to goods that fail to meet manufacturing specifications, often affecting appearance but not usability. These products are typically sold at a discount due to their imperfections.
In law, irreparable harm or irreparable damage refers to something that cannot be compensated for adequately in a court of law through monetary compensation, injunction, or specific performance, and for which reasonable redress for the inflicted injury cannot be received.
Irrevocable refers to something that is incapable of being recalled or revoked and is unchangeable. For instance, an irrevocable letter of credit issued by a bank guarantees that the bank will lend the money requested if the terms of the contract are met.
An irrevocable letter of credit, also known as ILOC, is a financial instrument issued by a bank guaranteeing a buyer's payment to a seller will be received on time and for the correct amount, providing the terms specified in the letter are met. It cannot be amended or canceled without the consent of the beneficiary.
An irrevocable trust is a type of trust that cannot be altered, amended, or terminated without the consent of the beneficiary or beneficiaries. It is typically set up to provide asset protection and tax benefits.
Economic analysis developed by John Maynard Keynes based on the interaction of the money market and the goods market. It helps predict the effect of monetary and fiscal policies on interest rates and domestic production.
ISA stands for International Standard on Auditing and Individual Savings Account, addressing auditing standards and personal savings respectively.
An ISA mortgage is a type of interest-only mortgage where the borrower only pays interest and invests in an Individual Savings Account (ISA) to eventually repay the capital.
A system of finance that is bound by religious laws that prohibit the taking of interest, with several techniques for profit-sharing and ethical investment.
An island display is a merchandising strategy where products are showcased in the aisle of a retail store, typically utilizing racks or fixtures. It is designed to attract customer attention and encourage impulse purchases.
An issue can refer to securities sold by a corporation, the process of selling new securities, descendants in estate planning, or a point of dispute in legal practice.
Issue by tender, also known as sale by tender, is a method where an issuing house invites investors to submit bids for a new issue of shares or other securities. The securities are subsequently allocated to the highest bidders, with a specified minimum price.
The issue price, also known as the offering price, is the price at which a new issue of shares is sold to the public. The market price of the securities may vary post-issuance, trading at a premium or a discount to the issue price.
Issued and outstanding shares are shares of a corporation that have been authorized in the corporate charter, issued, and are currently held by shareholders. These shares represent the capital invested by the firm's shareholders and owners.
Issued share capital refers to the total amount of a company’s shares that have been issued and are held by shareholders. This serves as a subset of the company's authorized share capital.
A legal entity that has the power to issue and distribute securities. Issuers include corporations, municipalities, foreign and domestic governments and their agencies, and investment trusts. They are responsible for corporate reporting, paying dividends, and servicing debt.
Itemized deductions are specific, individualized tax deductions allowed under provisions of the Internal Revenue Code and state and municipal tax codes for particular expenses incurred by the taxpayer during the taxable year. These deductions are permitted in computing taxable income, but there is an overall limitation on certain itemized deductions. An alternative to itemizing deductions is to claim the standard deduction.
Iteration refers to the process of repeating a particular action in programming, mathematics, and other fields. It includes definite iteration, which repeats a fixed number of times, and independent iteration, which stops when a specific condition is met.
An itinerant worker is an individual who continually moves from job to job, often employed in seasonal or temporary roles, especially in agricultural settings.
In economics, the J-Curve illustrates the expected turnaround in an activity, such as foreign trade, where the initial deterioration is followed by a significant improvement.
A jack is a connector into which a plug can be inserted, facilitating the connection and transmission of electrical signals, data, or power between different devices.
An object-oriented programming language created by Sun Microsystems, Java is a device-independent language which means that programs compiled in Java can be run on any computer..
Jawboning is a persuasive technique where high-ranking officials attempt to influence or pressure others to behave in a desired manner by virtue of their position and authority.
A Jewel Case is a rigid, clear plastic case that protects compact discs (CDs) or DVDs. It typically includes a paper insert for the face of the case, which is 120 mm (4.7 inches) square.
Just-In-Time (JIT) techniques are inventory management strategies designed to increase efficiency and reduce waste through the timely knowledge and handling of materials.
An identifiable, discrete piece of work carried out by an organization. For costing purposes, a job is usually given a job number.
Job analysis is the process of organizational analysis of a job to determine the responsibilities inherent in the position as well as the qualifications needed to fulfill its responsibilities. It is essential when recruiting to locate an individual having the requisite capabilities and education.
A job bank is a data repository that contains job listings categorized by various criteria, typically hosted on a computer. It is commonly used by employment agencies and large organizations to enhance job-seeking and hiring processes.
A job card, also known as a job ticket, is a document that contains written instructions detailing the operations needed to complete a specific job. These instructions can take various formats, including physical cards or digital printouts.
Job classification is a method of categorizing jobs into ranks or classes for the purposes of work comparison and wage comparability. It helps organizations systematically ensure equitable and competitive employee compensation.
A job cost sheet is a detailed record of the budgeted or actual costs of materials and labor required to produce a specific product. It plays a critical role in job costing systems used primarily in manufacturing.
Job costing involves tracking the expenses linked to specific projects or jobs which are typically broken down into direct materials costs, direct labour costs, and overheads.
Job costing, also known as job order costing or specific order costing, is a costing methodology used to accurately assess the costs associated with individual jobs within an organization—essential for businesses that produce a diverse range of products or services.
Job depth, also known as job enrichment, refers to the ability and power an employee has to influence their work environment. It pertains to the amount of discretion an employee has in a job, often varying by the level of specialization and seniority.
A detailed analysis and documentation of all the duties, responsibilities, conditions, and parameters required for the execution of a specific job.
Job enrichment involves motivating employees through expanding job responsibilities and giving increased control over the total production process. This empowerment often includes training, support, and enhanced input into procedures.
A systematic method of determining the relative worth of jobs in an organization. Job evaluation is important when an organization seeks to establish relative pay levels for job classifications based upon an equitable ranking of job importance and responsibilities.
Expenses incurred while looking for a new job in the same line of work, whether or not a new job is found. These miscellaneous itemized deductions for tax purposes are subject to the 2% Adjusted Gross Income (AGI) floor. Expenses of search for one's first job after completing school are not deductible.
A job jumper, also known as a job hopper, is an individual who frequently changes jobs. This behavior can be perceived as detrimental to one's career as it may indicate an inability either to commit to an organization or maintain long-term employment.
